Daycare.com Forum
Daycare and Taxes>How To Do Depreciation?
Lila 12:37 PM 02-02-2014
I purchased two laptops for my business this past year. The first one I bought was to replace the children's computer which we played our music and videos on and that parents signed in on because my last one died. The second one I bought so that I could have space to save things I need to print for my child care, create my newsletters (the other didn't have any programs), and to use for my continuing education in order to obtain my bachelors degree (as I'm going to school online). I am confused on how to do the depreciation of both of the computers. The first one is completely business use only and cost me 502.99. The second one, as I said, I also use to go to school and that one cost me 906.31. I am confused as to how to figure out depreciation (which is why I don't buy anything that I have to depreciate and have never depreciated my appliances and such). I have read Tom's blog and still very confused! My T/S % is 45.16 if that is needed. Can someone please help?
TomCopeland 12:48 PM 02-02-2014
Originally Posted by Lila:
I purchased two laptops for my business this past year. The first one I bought was to replace the children's computer which we played our music and videos on and that parents signed in on because my last one died. The second one I bought so that I could have space to save things I need to print for my child care, create my newsletters (the other didn't have any programs), and to use for my continuing education in order to obtain my bachelors degree (as I'm going to school online). I am confused on how to do the depreciation of both of the computers. The first one is completely business use only and cost me 502.99. The second one, as I said, I also use to go to school and that one cost me 906.31. I am confused as to how to figure out depreciation (which is why I don't buy anything that I have to depreciate and have never depreciated my appliances and such). I have read Tom's blog and still very confused! My T/S % is 45.16 if that is needed. Can someone please help?
You can use the Section 179 rule on the first computer and deduct it all in 2013 on Part I of Form 4562.I purchased two laptops for my business this past year. The first one I bought was to replace the children's computer which we played our music and videos on and that parents signed in on because my last one died. The second one I bought so that I could have space to save things I need to print for my child care, create my newsletters (the other didn't have any programs), and to use for my continuing education in order to obtain my bachelors degree (as I'm going to school online). I am confused on how to do the depreciation of both of the computers. The first one is completely business use only and cost me 502.99. The second one, as I said, I also use to go to school and that one cost me 906.31. I am confused as to how to figure out depreciation (which is why I don't buy anything that I have to depreciate and have never depreciated my appliances and such). I have read Tom's blog and still very confused! My T/S % is 45.16 if that is needed. Can someone please help?
The second computer you can use the Section 179 rule if you used it more than 50% for your business. Determine the business portion by estimating the number of hours you used it for business vs. personal purposes. If the business use is less than 50%, depreciate it over 5 years.
You are missing out on many deductions if you don't depreciate your furniture and appliances. Use my 2013 Family Child Care Tax Workbook or seek out a tax professional to calculate your depreciation deduction.
Don’t miss my February 4th webinar “Tax Changes for 2013: How to Avoid Mistakes When Filling Out Your 2013 Tax Forms.” It starts at 9pm Eastern Time and is sponsored by Daycare.com. Register here:http://events.r20.constantcontact.co...&llr=yatrx4cab
Lila 01:32 PM 02-02-2014
Thank you Tom! I'm still confused and think that I am going to be attending your webinar in hopes I can understand things better. I do use the second computer mostly for my business, but keep it out of reach of the children as they have already messed up the first one. Thankfully I have a tablet that is school use 
so I don't need that laptop except when it comes to business stuff mostly. I maybe use it 10% of the time for school. Would a printer purchased for $429 and then the extra ink and paper I bought for $452 be attended to in the same way as the computers?
so I don't need that laptop except when it comes to business stuff mostly. I maybe use it 10% of the time for school. Would a printer purchased for $429 and then the extra ink and paper I bought for $452 be attended to in the same way as the computers?
TomCopeland 08:47 PM 02-02-2014
Originally Posted by Lila:
Thank you Tom! I'm still confused and think that I am going to be attending your webinar in hopes I can understand things better. I do use the second computer mostly for my business, but keep it out of reach of the children as they have already messed up the first one. Thankfully I have a tablet that is school use so I don't need that laptop except when it comes to business stuff mostly. I maybe use it 10% of the time for school. Would a printer purchased for $429 and then the extra ink and paper I bought for $452 be attended to in the same way as the computers?
Treat the printer the same way as the computer. Deduct the extra ink and paper separately as supplies and claim them in one year. Either use your time-space % or estimate the actual business use.Thank you Tom! I'm still confused and think that I am going to be attending your webinar in hopes I can understand things better. I do use the second computer mostly for my business, but keep it out of reach of the children as they have already messed up the first one. Thankfully I have a tablet that is school use
so I don't need that laptop except when it comes to business stuff mostly. I maybe use it 10% of the time for school. Would a printer purchased for $429 and then the extra ink and paper I bought for $452 be attended to in the same way as the computers?